The digitalisation of payments offers speed, convenience, and global reach. Yet, this transformation comes with additional vulnerabilities—chief among them, the risk of outages that can paralyze paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More systems. Recent high-profile IT failures, including , Spain’s power outage in June 2025, and the global CrowdStrike Falcon Sensor outage in July 2024, have exposed the fragility of digital payment infrastructure. These incidents underscore the irreplaceable role of cashMoney in physical form such as banknotes and coins. More as a backup when digital payments fai
On 21 October 2025, AWS, the world’s largest cloud provider, experienced a major outage that disrupted services for thousands of businesses globally, including banks, payment processors, fintech platforms, and e-commerce sites. AWS’s cloud infrastructure underpins many digital payment systems, and its failure caused widespread transaction failures, delayed settlements, and service disruptions. The outage highlighted the risks of over-reliance on a single cloud provider and the fragility of cloud-dependent financial infrastructure.
The incident served as a stark reminder that even the most advanced digital payment systems are vulnerable to IT failures. It also raised questions about redundancy and resilience in cloud-based financial services, prompting calls for multi-cloud strategies and improved contingency planning.
In June 2025, a major electricity grid failure in Spain disrupted power supply nationwide, affecting critical infrastructure, including banking and payment systems. The outage led to online banking blackouts, and failed card payments across the country. Customers were unable to make digital payments, or access their accounts for several hours.
This incident exposed vulnerabilities in both electrical and IT infrastructure, highlighting the . It also underscored the when digital systems fail due to external factors like power outages.
In July 2024, a faulty update to caused a global IT meltdown, affecting millions of Windows-based systems worldwide. The outage disrupted airlines, banks, hospitals, and payment processors, including Visa and Mastercard transaction systems in some regions. Point-of-sale (POSAbbreviation for “point of sale”. See Point-of-Sale terminal. More) systems, ATMs, and online payment gateways froze or crashed, leading to failed transactions, long queues at stores, and delayed salary payments.
This incident demonstrated how cybersecurity software failures can have cascading effects on payment ecosystems, even when the outage originates outside the financial sector. It highlighted the risks of third-party dependencies and the importance of diversified IT dependencies and robust contingency plansWork performed for the purpose of establishing protocols and procedures to be followed for the occurrence of an incident (theft, fire, natural catastrophe, etc.) or a situation (strike, unexpected demand, etc.), where normal work systems are unable to resolve problems. More.
IT outages impose significant economic costs. According to the Ponemon Institute’s 2024 Cost of Data Center Outages report, the average cost of a data center outage is approximately $9,000 per minute, with financial services among the sectors most severely impacted. The Uptime Institute’s 2025 Annual Outage Analysis reports that IT outages cost the global economy , with banking and payments sectors experiencing some of the highest losses due to their critical role in commerce.
A report published by the UK Treasury Committee in March calculated that outages suffered by UK banks over the last two years amount to more than two months. These metrics underscore the financial and reputational risks of IT failures in payment systems. They also highlight the importance of investing in resilient IT infrastructure and maintaining cash as a backup to ensure continuity of payments.
The recent IT outages have reinforced the recognition that cash remains an irreplaceable backup for digital payments. , recognizing that cash provides:
These outages serve as powerful case studies of the vulnerabilities inherent in digital payment systems. These incidents highlight the critical need for . They also underscore the irreplaceable role of cash as a backup when digital payments fail.
As the world moves towards greater digitalization of payments, the lessons from these outages must inform policy, technology, and consumer education. Cash’s role as a fallback is a necessity for ensuring financial stability and inclusion in an increasingly digital economy.
The resilience of the cash ecosystem will be a key topic at the Future of Cash Conference, where experts will discuss how cash continues to underpin financial systems, especially during IT outages and crises. For more insights and to join the conversation, visit the conference website: Future of Cash Conference.